March Chgo Wheat closed 16 ¾ cents higher ($6.65 ¼), May 15 ¼ cents higher ($6.64 ¼) & July 13 ¾ cents higher ($6.47 ½)
March KC Wheat closed 13 ¾ cents higher ($6.41), May 13 ¼ cents higher ($6.44 ¼) & July 12 cents higher ($6.41 ¼)
March Mpls Wheat closed 12 cents higher ($6.38), May 11 ¾ cents higher ($6.46 ½) & July 12 ¼ cents higher ($6.52)
Russia’s doubling of wheat export taxes to start March 1st has been officially announced. This and the rally elsewhere in the US Ag complex buoys prices higher on Tuesday. I have to wonder if China’s big corn purchase is the start of something big for the US wheat market. China has been auctioning its wheat reserves for the past number of months and only recently has it been well received.
Interior cash wheat prices remain static. This holds true for the export basis as well. The nearby Chgo spread runs steady while old crop gains on the new crop. Spreads ran similar in KC but not as noticeable when compared to Chgo. The inter-market KC/Chgo spread gave way to Chgo’s flat price buying. KC has gained 30 cents on Chgo since the first week of the month.
Can the wheat futures go it alone without the influence of the corn and soybean markets? I’m not so sure. Daily momentum indicators are on the verge of swinging higher. One would think the Monday, Tuesday rally of nearly 44 cents is deserving of some backing and filling. Chasing rallies in the wheat market still scares the daylights out of me.
Daily & Resistance – 01/27
March Chgo Wheat : $6.55 – $6.75
March KC Wheat: $6.30 – $6.50
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.